Employees at Small Firms Find
Managed Care a Tough Choice

For employees at small firms, the managed-care revolution has landed a stinging one-two punch: less choice among physicians and sharply higher out-of-pocket costs.

Health-insurance premium costs for employees at companies with fewer than 200 workers soared nearly five-fold to $56 a month last year from $12 in 1988, according to a new study. Costs for family coverage rose even more dramatically, climbing to $175 a month in 1996 from...